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KUALA LUMPUR (Feb 28): Malayan Banking Bhd, Malaysia’s biggest bank in terms of assets, said on Wednesday its net profit rose 8.3% year-on-year for the fourth quarter ended Dec 31, 2023 (4QFY2023), as strong gains at its insurance segment and non-interest income offset a decline in net interest income.
Net profit was RM2.39 billion, compared with RM2.21 billion for 4QFY2022, the company also known as Maybank said in an exchange filing. Net interest income fell 9.4% to RM3.18 billion from a year ago, while non-interest income was up 5.4% at RM1.90 billion.
“Given the improved regional economic outlook, Maybank is poised to capitalise on identified business growth in key areas of community financial services, global banking and insurance in the home markets,” the lender said. The focus will cut across fund- and fee-based income, Maybank noted.
For 2024, Maybank said it is targeting a return-on-equity of 11%.
The banking group also declared a full-cash second interim dividend of 31 sen per share, lifting full-year dividends to 60 sen per share, translating into a payout of 77.4%.
For the full FY2023, net profit climbed 17% to RM9.35 billion, from RM7.96 billion a year ago. Net interest income fell 7.4% to RM12.79 billion on higher interest expenses on deposits for customers, while non-interest income surged 74% to RM7.98 billion, thanks to higher investment income and paper gains.
Net allowances for impairment losses on loans, advances, financing and other debts fell 16.3% to RM1.83 billion.
The net interest margin, a measure of profitability from lending, shrank 27 basis points in FY2023, due to higher funding costs and deposit competition. Group loans grew 9.2%, while current-account-savings-account declined 1.7%. Fixed deposits climbed 11.2%.
“We witnessed tangible progress in deepening customer relationships, increased revenue diversification, and optimising operational efficiency,” said Maybank chief executive officer Datuk Khairussaleh Ramli. “Notwithstanding this, targeted strategic investments will be continued to ensure enablers and capabilities are able to cope with the business and operational needs.”